Construction Tech Innovation in the UK (2024)

The construction tech landscape, both globally and in the UK, is vast and complex. The sheer number of companies offering solutions can be overwhelming due to the industry’s broad scope. Understanding this ecosystem is crucial for anyone navigating the sector.

A helpful starting point for me was this diagram from the C-Tech Club, which has a nice overview of construction stages that link to technology categories.

Online directories such as ADDD and aec+tech also provide valuable visibility on the companies operating in this space.

For those interested in the future of construction technology, the Future AEC Software Specification outlines a compelling vision for what the industry needs. While it provides excellent direction, there’s still a pressing need for greater collaboration on this vision within the software industry to deliver integrated solutions effectively.

Why the Construction Industry Lags in Innovation

Despite the billions spent annually on construction, the industry has a reputation for lagging behind in technological adoption. Why hasn’t construction tech seen the same level of investment and growth as other sectors?

There are many articles that talk about the reasons for poor productivity in the sector. A few here are worth elaborating on.

• Many technology products are still focusing on control and oversight, not actual tools/methods that directly boost productivity.
• Low margins on projects: It's well-known that contractors are typically working with very low margins. How many differentiate themselves by using technology to lower risk or increase productivity to win bids, as opposed to lower margins? It seems that in recent years software to reduce risks is a trend.
• Project owners are key to productivity: Leaders need to see the benefit of making investments in technology/people that span multiple projects. Developers are well-known to profit from land deals and land appreciation, so are less incentivised to make make investments for operational efficiency. What can we do to change this?

The Role of Open-Source Companies

Open-source technology has revolutionized the internet and the broader software industry by enabling global collaboration, reducing development costs, and accelerating innovation. Foundational projects like Linux, Apache, and Kubernetes power today’s internet infrastructure, cloud computing, and application deployment.

However, the construction tech sector has been slower to embrace open-source principles. A couple noteworthy companies are investing in open-source tech as part of their business:

• Speckle: A data management tool for 3D building models, Speckle is an excellent example of an open-core business. Its growing popularity stems from its ability to solve interoperability challenges between different 3D software packages.
• Pollination: This cloud platform for energy analysis modeling has adopted a hybrid open-core model. While its plugins are open-source, its proprietary cloud platform remains closed, creating a balanced approach to driving adoption while protecting its commercial interests.

Why are there not more companies like these in construction tech?

Final Thoughts

With increased collaboration, targeted investment, and a stronger embrace of open-source principles, the sector could unlock transformative innovation. We are eager to collaborate with construction companies aiming to enhance technology adoption, improve process efficiency, and strengthen digital collaboration.